Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Investment and Infrastructure Fund
Mains level: Not Much
Finance Minister has urged the National Investment and Infrastructure Fund (NIIF) to expand its operations and explore ways to crowd in private capital for projects under the National Infrastructure Pipeline, PM Gati Shakti and National Infrastructure Corridor.
What is NIIF?
- National Investment and Infrastructure Fund (NIIF) is India’s first infrastructure specific investment fund or a sovereign wealth fund that was set up in February 2015.
- The objective behind creating this fund was to maximize economic impact mainly through infrastructure investment in commercially viable projects, both Greenfield and Brownfield.
- It was proposed to be established as an Alternative Investment Fund to provide long tenor capital for infrastructure projects with an inflow of ₹20,000 crore from the GoI.
- It was registered with SEBI as Category II Alternative Investment Fund.
Types of funds in NIIF
- NIIF manages three funds: Master Fund, Fund of Funds and Strategic Fund.
- The funds were set up to make investments in India by raising capital from domestic and international institutional investors.
- Master Fund: It is an infrastructure fund with the objective of primarily investing in operating assets in the core infrastructure sectors such as roads, ports, airports, power etc.
- Fund of Funds: The Fund of Funds anchor and/or invest in funds managed by fund managers who have good track records in infrastructure and associated sectors in India. Some of the sectors of focus include Green Infrastructure, Mid-Income & Affordable Housing, Infrastructure services and allied sectors.
- Strategic Opportunities Fund: It is registered as an Alternative Investment Fund II under SEBI in India. Its objective is to invest largely in equity and equity-linked instruments. It has been established to provide long-term capital to strategic and growth oriented sectors in the country with the aim to build domestic leaders.
Functions of NIIF
The functions of NIIF are as follows:
- Fund raising through suitable instruments including off-shore credit enhanced bonds, and attracting anchor investors to participate as partners in NIIF;
- Servicing of the investors of NIIF.
- Considering and approving candidate companies/institutions/ projects (including state entities) for investments and periodic monitoring of investments.
- Investing in the corpus created by Asset Management Companies (AMCs) for investing in private equity.
- Preparing a shelf of infrastructure projects and providing advisory service
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From UPSC perspective, the following things are important :
Prelims level: KJWA
Mains level: Agricultural emissions
India has expressed its concern over the draft decision text to implement the Koronivia Joint Work on Agriculture.
What is the news?
- India said developed countries are blocking a pro-poor and pro-farmer decision by insisting on expanding the scope for mitigation to agriculture.
- Developed countries are thereby compromising the very foundation of food security in the world.
What is the Koronivia Joint Work?
- The KJWA is a decision under the United Nations Framework Convention on Climate Change (UNFCCC).
- It seeks to recognize the unique potential of agriculture in tackling climate change.
- It emphasizes reducing emissions of greenhouse gases due to the agriculture sector.
- The Koronivia decision addresses six interrelated topics on soils, nutrient use, water, livestock, methods for assessing adaptation, and the socio-economic and food security dimensions of climate change across the agricultural sectors.
India’s arguments against Koronivia joint work
- India said that agricultural emissions are not “luxury” emissions but “survival” emissions of the poor.
- The world is facing a climate crisis today because of the excessive historic cumulative emissions by the developed nations.
- These nations are unable to reduce their emissions domestically by any worthwhile change in their lifestyles.
- Rather, they are searching for cheaper solutions abroad.
- In most developing countries across the world, agriculture is done by small and marginal farmers who toil hard and brave the vagaries of extreme weather and climate variability to ensure food security.
Back2Basics: Agricultural Emissions
- Farms emitted 6 billion tonnes of GHGs in 2011, or about 13 percent of total global emissions.
- That makes the agricultural sector the world’s second-largest emitter, after the energy sector (which includes emissions from power generation and transport).
- Most farm-related emissions come in the form of methane (CH4) and nitrous oxide (N2O).
- Cattle belching (CH4) and the addition of natural or synthetic fertilizers and wastes to soils (N2O) represent the largest sources, making up 65 percent of agricultural emissions globally.
- Smaller sources include manure management, rice cultivation, field burning of crop residues, and fuel use on farms.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Moscow Format
Mains level: Restoration and normalization of governance in Taliban
The Moscow Format of Consultations on Afghanistan was recently held in the Russian capital.
What is the Moscow Format?
- The Moscow format was introduced in 2017 on the basis of the six-party mechanism for consultations between special representatives from Russia, Afghanistan, China, Pakistan, Iran and India.
- The present meeting includes a group of 10 nations including India, China, Pakistan, Iran and the Central Asian republics with Taliban officials.
- Russia had previously convened a new meeting of the ‘Extended Troika’ on Afghanistan which included Russia, the United States, China and Pakistan.
- The US pulled out of the last meeting.
- Taliban did not participate in the talks but, welcomed the discussion and declared that it will not allow Afghan territory to be used against “stability of the region”.
Key outcomes of the meet
- The dialogue called for respect for all Afghan ethnic groups and minorities in a bid to create national reconciliation in the war torn country.
- The Russian hosts, presented a White Book on the civilian losses in Afghanistan due to the actions of the NATO forces during the past two decades.
- The representatives at the talks also called for “complete unfreezing” of Afghanistan’s assets by Washington.
Urging the Taliban Govt.
- Prevent poppy cultivation: Participating countries called upon the Taliban setup to “fulfil its commitments to eradicate terrorism and drug trafficking” that continue to emanate from the Afghan territory.
- Stop atrocities: The return of the Taliban has been followed by a series of attacks on Shia Hazaras and growing atrocities against women and political opponents.
- Inclusive govt. formation: The participants underscored the importance of forming a “truly inclusive government in Afghanistan, reflecting the interests of all major ethno-political groups of the country.”
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Uda Devi
Mains level: Not Much
On November 16, events to commemorate the martyrdom of Uda Devi, a freedom fighter from the Pasi community, were held at various places in Uttar Pradesh.
Who was Uda Devi?
- Uda Devi is remembered not only for her stories of valour but also for her skill as a leader who managed to mobilise people — especially Dalit women — to take up arms against the British.
- Born in Ujirao, Lucknow, she was part of the royal guard of Begum Hazrat Mahal of Awadh.
- Her husband, Makka Pasi, worked as a foot soldier in the army of Awadh’s Nawab, Wajid Ali Shah.
- Hazrat Mahal’s palace had several women belonging to marginalised communities, and their occupation was mostly to take care of the needs of the royalty.
- Some of them, who showed promise, were also trained as warriors. Uda Devi was one of them.
Her legend
- Amid the revolt of 1857, on June 10, at Chinhat near Ismailganj, a battle was fought between the army of Lucknow and the British troops led by Henry Lawrence, in which Makka Pasi lost his life.
- The death of her husband spurred Uda Devi on to take up a more active role in the mutiny.
- On November 16, 1857, Uda Devi was among the soldiers who clashed with the British regiment stationed near the Gomti River.
- Although not much of the fight has been documented in history, it is said that Uda Devi killed at least three dozen British soldiers from atop a tree before she could be spotted.
Can you recall the Eka Movement of 1921 from your modern history references? If not, take your time to revise. Read about the contribution of Madari Pasi in this movement.
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From UPSC perspective, the following things are important :
Prelims level: Bali Yatra
Mains level: Not Much
In his address to the Indian diaspora in Bali on the sidelines of the G20 summit, PM Modi mentioned the annual Baliyatra on the banks of the Mahanadi in Cuttack, which celebrates the ancient trade relations between India and Indonesia.
Baliyatra
- Baliyatra/ Balijatra, literally ‘voyage to Bali’, is one of India’s largest open-air fairs.
- It is organised every year to commemorate the 2,000-year-old maritime and cultural links between ancient Kalinga (today’s Odisha) and Bali and other South and Southeast Asian regions.
Origins of the festival
- The origins of the festival, which begins on Kartik Purnima (full moon night in the month of Kartik) can be traced back more than 1,000 years.
- The Bay of Bengal region had several ports, and sadhavas (traders) traditionally began their voyage across the sea on this auspicious day, when the winds were favourable for the boats, known as boita, to sail.
- The traders would set sail to distant lands of Bali, as well as Java (at the time of the voyage known as “Yawadvipa”), Sumatra, Borneo (all in Indonesia), and Sri Lanka (formerly Ceylon) for trade and cultural expansion.
- According to historians, popular items of trade between Kalinga and Southeast Asia included pepper, cinnamon, cardamom, silk, camphor, gold, and jewellery.
- Even today, thousands of people across Odisha sail decorative miniature boats made of banana stems, paper, or thermocol to celebrate boita bandana, or the worshipping of the boats.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ayushman Bharat Digital Mission
Mains level: Issues with interoperability of Private Sector under Ayushman Bharat Digital Mission
Context
- On 27 September, 2021, Prime Minister Narendra Modi announced the rollout of the Ayushman Bharat Digital Mission with the aim of integrating the different and disparate digital health systems that exist into a National Digital Health Ecosystem.
What is Ayushman Bharat Digital Mission (ABDM)?
- The ABDM currently has five main components:
- Ayushman Bharat Health Account (ABHA) number: A unique health identification number,
- Healthcare Professionals Registry (HPR): A repository of healthcare professionals across both modern and traditional systems of medicine,
- Health Facility Registry (HFR): A repository of both public and private health facilities, including hospitals, clinics, diagnostic laboratories, and pharmacies,
- Unified Health Interface (UHI): An open protocol for digital health services linking patients with healthcare providers,
- ABHA Mobile App: An app allowing an individual to carry electronic health records.
- Digitization push of Government: To achieve the Sustainable Development Goals and targets of universal health coverage, the Indian government has expended significant efforts to promote the digitization of the healthcare sector to make health accessible, affordable, and equitably distributed.
- Citizens and doctors can access the health registry: The two registries would ostensibly create a database of India’s healthcare institutions and professionals that citizens would be able to access.
- Digital health card: The ABHA number and the application allow citizens to securely identify themselves and carry their health records to any healthcare facility.
- Targeted health care services: And lastly, the UHI would facilitate greater access to and delivery of healthcare services.
- Huge data for research: All of this activity has and will generate a tremendous quantity of data, which will be crucial for research, innovation, and policymaking.
Importance of private sector in health sector
- Mixed health care system: India has a mixed healthcare system, which means that it has both public and private healthcare providers. Without significant participation from the private healthcare providers, the ABDM’s ability to achieve its objectives will be limited.
- 81% doctors are private: This is because private healthcare infrastructure accounts for nearly 62 per cent of all of India’s health infrastructure and the private sector also provides 81 per cent of the doctors in India.
- Preference to private healthcare: Both rural and urban population in India seem to prefer seeking treatment from the private sector. Only 33 per cent of the rural and 26 per cent of the urban population depend on the public sector for healthcare.
Why Private health care are opting out of ABDM?
- Voluntary participation in ABDM: The voluntary nature of participation in the ABDM has led to a significant portion of private healthcare providers opting to not participate in the universal programme nor integrate into the UHI.
- High cost for digital records: Small healthcare providers like charitable hospitals, clinics, diagnostic labs, pharmacies, or nursing homes are less inclined to participate because of the significant costs involved.
- Requirement of manpower for digitization: The cost to these healthcare providers, who are most likely in various stages of digitisation, is the number of man hours required to digitise their health records and other data.
- Financial cost of digitization: The actual financial cost of upgrading or altering their digital health systems to meet basic required standards to participate in the ABDM and the UHI.
Impact of non-participation by private players
- A lack of participation from the private sector will negatively impact the objectives of the ABDM in major way:
- Limited success for UHI: Considering the concentration of private healthcare providers in urban areas, a lack of their participation and integration would limit the UHI’s ability to bring previously inaccessible services to the rural population who would otherwise have to travel to access them.
- Incomplete data and ineffective policy: The data generated by the ABDM and use of the UHI would be incomplete, which in turn would significantly limit the effectiveness of policy planning and programme delivery.
Conclusion
- It is unclear whether the government intends to achieve private sector participation through incentives or mandates. Without either approach, it seems that the ABDM will see little participation from smaller private healthcare providers, though how this will play out remains to be seen.
Mains Question
Q. What is the significance of Private Players in health care system of India? Explain the crucial role of Private health care in Ayushman Bharat digital Mission.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Free Trade Agreements
Mains level: Indias FTA's and frameworks and its significance
Context
- To achieve the export target of $2 trillion by 2030, India is going the whole hog on free trade agreements (FTAs). India is negotiating FTAs with countries such as the European Union, Canada, the U.K., and Israel.
Importance of FTA
- FTA include multiple trade aspects: FTAs cover a wide array of topics such as tariff reduction impacting the entire manufacturing and the agricultural sector; rules on services trade; digital issues such as data localization; intellectual property rights that may have an impact on the accessibility of drugs; and investment promotion, facilitation, and protection.
- Great impact on economy and society: Consequently, an FTA has a far-reaching impact on the economy and society. Given this, one legitimately expects transparency and greater scrutiny of the FTA process both during and after the negotiations.
What are the problems with Indian FTA negotiations?
- Lack of transparency in negotiations: India negotiates most FTAs behind closed doors with very little information about the objectives and processes followed and negligible scrutiny.
- No robust framework for FTA negotiations: This is not the case in other countries with whom India is negotiating such an FTA. In the U.K., for example, there are several robust mechanisms that foster a certain degree of transparency in the FTA negotiations. Furthermore, there are institutional apparatuses that enable the scrutiny of the actions of the executive, during and after the signing of the FTA.
- Detailed information on FTA’s: Department of International Trade (DFIT), U.K., publishes a policy paper laying down the strategic objectives behind negotiating an FTA and why it is important for the U.K. to have an FTA with a particular country. This policy paper is fairly detailed listing the specific advantages of signing an FTA such as the economic gains expected, distributional impacts, the environmental impact, and the labour and human rights dimensions of the FTA.
- Inputs from stakeholders: The policy paper that the DFIT publishes also contains the inputs and responses received by various stakeholders such as businesses, non-governmental organizations, and others. Furthermore, the policy paper also explains the government view on specific suggestions
- FTA scrutiny by parliament: In the U.K., the strategic objectives identified by the government for signing an FTA are scrutinized by the U.K. Parliament. This job is performed by the International Agreements Committee (IAC) of the British Parliament. The IAC hears expert witnesses on the FTA, critically examines the government’s strategic objectives for each FTA under negotiation, and offers key recommendations wherever it finds gaps in the government’s approach. The U.K. government then responds to these recommendations.
- Parliament has to ratify the FTA: In the U.K, under the Constitutional Reform and Governance Act, 2010, the executive has to lay down a treaty before the British Parliament for 21 sitting days with an explanatory memorandum before ratifying it. This allows Parliament to be apprised of the treaty the executive is going to ratify.
The contrast case of India’s FTA
- No publicly produced document in India: In India, no such document is produced publicly that makes a case for signing an FTA and assessing its impact on the environment and society at large. The Commerce Ministry the nodal body dealing with FTAs on its website provides the bare minimum information about FTA negotiations.
- No record of discussion with the stakeholders: Seemingly, the Commerce Ministry also undertakes stakeholder consultations and inter-ministerial meetings but there is no public record of these discussions and the government’s response to the concerns of stakeholders.
- No parliamentary scrutiny: In India, there is no mechanism for such parliamentary scrutiny of the executive’s actions during the FTA negotiations. India’s parliamentary system allows for department-related parliamentary committees that discuss various topics of importance and offer recommendations. However, the Parliamentary Standing Committee on Commerce (PSCC) rarely scrutinises the Indian government’s objectives behind negotiating and signing an FTA.
- No role for parliament to ratify the FTA: In India, there is no mechanism for any role of Parliament in the ratification of treaties including FTAs. Entering into treaties and matters incidental to it such as negotiations, signing and ratification are within the constitutional competence of Parliament. But, Parliament in the last seven-plus decades has not exercised its power on this issue, thus giving the executive unfettered freedom in negotiating, signing, and ratifying treaties including FTAs.
Recommendations for Improving the India’s FTA framework
- Publicise the objectives of FTA: India should take a leaf out of the U.K. book and develop a law on entering treaties including FTAs. This law should have the following parts. The executive should make a clear economic case outlining its strategic objectives publicly for entering into negotiations for a treaty such as an FTA.
- Mandatory consultation with all stakeholders: The executive should be under an obligation to consult all stakeholders, respond to their concerns and make this information publicly available.
- Dedicated parliamentary committee to scrutinize the FTA: The Indian Parliament should constitute a committee on the lines of the U.K.’s IAC that will scrutinise the strategic objectives behind entering into an FTA.
- Mechanism to ratify the FTA by parliament: The executive should place the FTA on the floor of Parliament for a certain duration, allowing Parliament to debate it, before ratifying it.
Conclusion
- While the executive’s constitutional prerogative of entering into an FTA or international treaties, in general, is indisputable, this power should be exercised in a manner that makes the executive answerable. After all, an integral facet of democracy is to hold the executive to account for its actions. It should be no different for negotiating international treaties including FTAs.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Vice-Chancellor Appointment and Centre state relation
Context
- Recent judgments of the Supreme Court of India on the appointment of vice chancellors (VC) in State universities in violation of the regulations of the University Grants Commission (UGC) are significant in the context of higher education in a federal country such as India.
- Gambhirdan K. Gadhvi vs The State of Gujarat (March 3, 2022): In the case, Gambhirdan K. Gadhvi vs The State of Gujarat (March 3, 2022), from Sardar Patel University, Gujarat, the Court (Justices M.R. Shah and B.V. Nagarathna) quashed the appointment of the incumbent Vice Chancellor on the ground that the search committee did not form a panel for the appointment of VC, and, therefore, was not in accordance with the UGC Regulations of 2018.
- UGC regulations will prevail over state law: It was held that since the State law was repugnant to the UGC regulations, the latter would prevail and the appointment under the State law had become void ab initio.
- Professor (Dr) Sreejith P.S vs Dr. Rajasree M.S. (October 21, 2022): In the second case, from Kerala, i.e., Professor (Dr) Sreejith P.S vs Dr. Rajasree M.S. (October 21, 2022), with the Bench of Justices M.R. Shah and M.M. Sundresh, the appointment of the Vice Chancellor of the A.P.J. Abdul Kalam Technological University, Thiruvananthapuram, was challenged on the ground that the search committee recommended only one name, which is against the UGC Regulations.
- Supreme court quashed the appointment of VCs: The Court quashed the appointment of the VC on the ground that the provision relating to the search committee in the University Act is repugnant to the UGC Regulations, and was therefore void.
Implications of the recent judgement
- Many VCs asked to resigned by Governor: Decision of the Supreme Court triggered unprecedented developments in Kerala with the State Governor, who is the Chancellor of all the universities in Kerala, asking as many as 11 VCs of other universities of the State to resign immediately on the ground that their appointments too had become void after the Supreme Court’s judgment.
- Tussle between governor and state: No VC has resigned as per the direction of the Governor. This development has intensified an already raging battle between the state government and the Governor, which is likely to become fiercer with the Kerala High Court quashing the appointment of the VC of the Kerala University of Fisheries and Ocean Studies on November 14 on the ground that this appointment was in violation of the UGC Regulations.
What are the legal and constitutional issues with judgement?
- UGC regulations vs state university Act: In both these cases, the issue framed by the Supreme Court is about whether the appointment of VCs should be made as per the UGC Regulations or the provisions of the State University Act.
- Education in concurrent list, Centre and state can make a legislation: As education is a subject on the Concurrent list, this question needs to be addressed seriously. A VC is appointed by the Chancellor under the relevant University Act, but the Supreme Court has brought in Article 254 of the Constitution to rule that if provisions of the State law are repugnant to the provisions of the Union law, the State law will become void.
- State law declared void over UGC violations: In the cases mentioned above, the top court found that the search committee recommended only one name for the appointment of VC which violates the UGC Regulations which require three to five names, and, therefore, the provision of the State law is void.
- Subordinate regulations prevailed over state law: Thus, the Court’s conclusion is that if any provision in the State university law is repugnant to the UGC Regulations, the latter will prevail and the former will become void. So, on the one side we have an Act passed by a legislature and on the other we have regulations made by a subordinate body such as the UGC.
Opinion of experts
- State laws are subordinate to the act of parliament: A careful reading of Article 254 would show that the repugnancy under this Article relates to a state law and a substantive law made by Parliament. It impliedly excludes rules, regulations, etc. Rules and regulations are made by subordinate authorities in this case the UGC whereas the substantive law is made by the superior authority, namely Parliament.
- State laws are not subordinate to UGC regulations: The repugnancy can arise only between the provisions of the University Acts and the UGC Act, and not the regulations of the UGC.
- UGC regulations are inferior to state assembly: The rules and regulations made by the subordinate authority, though laid in Parliament, do not go through the same process as a law. Normally these do not require the approval of Parliament. The rules and regulations have an inferior status as compared to an Act. The Constitution cannot be assumed to equate the Act with the rules.
- Article 254 does not include regulations: The Constitution does not, in general terms, define the term law. The inclusive definition of law given in Article 13(2) is applicable only to that Article. It has no application to other Articles, which means the term law does not include the rules, regulations, etc. for the purpose of Article 254.
- Violation of federal principle: The regulations made by a subordinate authority of the Union overriding a law made by a state legislature will amount to a violation of federal principles and a negation of the concurrent legislative power granted to the State by the Constitution.
- UGC regulations are Not part of UGC act: The UGC Regulations on the appointment of VCs are outside the scope of the main provisions of the UGC Act as none of its provisions refers to the appointment of VCs.
Conclusion
- Issue of appointment of vice-chancellor has opened the new conflicting chapter between Centre-state relations. Supreme court’s decision has further added the confusion rather than clarity to the issue. Supreme court need to review the judgements for harmonious relations between Centre and states.
Mains Question
Q. Explain the article 254 about Centre-state legislative relations? How the issue of vice-chancellor appointment is problematic for Centre-state relationship?
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From UPSC perspective, the following things are important :
Prelims level: Carbon Border Tax
Mains level: Not Much
BASIC countries that includes India has jointly stated that carbon border taxes, that could result in market distortion and aggravate the trust deficit amongst parties, must be avoided.
EU proposes, BASIC opposes
- The European Union has proposed a policy — called the Carbon Border Adjustment Mechanism– to tax products such as cement and steel that are extremely carbon intensive, with effect from 2026.
- BASIC, a group constituting Brazil, India, South Africa and China have opposed this move.
- These are large economies that are significantly dependent on coal, has for several years voiced common concerns and reiterated their right to use fossil fuel.
What is Carbon Pricing?
- Carbon pricing is an approach to reducing carbon emissions that uses market mechanisms to pass the cost of emitting to emitters.
- Its goal is to discourage the use of fossil fuels, address the causes of the climate crisis and meet national and international agreements.
- Well-designed carbon pricing can change the behavior of consumers, businesses and investors while encouraging technological innovation and generating revenue that can be used productively.
- There are a few carbon pricing instruments, such as a carbon tax and cap-and-trade programmes.
What is Carbon Border Tax?
- A carbon border tax (CBT) is a tax on carbon emissions attributed to imported goods that have not been carbon-taxed at source.
- The carbon border tax proposal is part of the European Commission’s European Green Deal that endeavours to make Europe the first climate-neutral continent by 2050.
Objective:
- To ‘incentivize’ greener manufacturing around the world and create parity with European manufacturers who are already subjected to substantial carbon levies.
A move to benefit local EU manufacturers
The carbon border tax has wide appeal in Europe. It is supported by the new president of the European Commission.
- A carbon border tax is able to protect a country’s local manufacturers, motivating them to adhere to green regulations.
- Many EU companies are at a cost disadvantage as they have been paying a carbon border tax and for carbon emissions since 2005 under the EU’s Emissions Trading System.
- The new carbon border tax can therefore lead to a more level playing field against importers, especially those from nations with more lax environmental standards.
What could the new proposal mean politically?
- Notably, China’s continuing reliance on non-renewable energy to power its economy leaves it particularly vulnerable in this matter.
- For example, given that China produces steel with blast furnaces that release a large amount of carbon, it will have to pay an additional layer of carbon border tax, which will increase its costs and its market price.
- This will consequently reduce the competitiveness of steel produced in China, compared to steel from other countries that is made in more carbon-efficient mills that do not have to pay this additional tax.
This suggests that the carbon border tax is also politically preferable to Europe as it slows down the gradually rising economy in China, and would therefore preserve the European countries’ competitiveness.
How does this impact India?
- As India’s third largest trading partner, the EU accounted for €62.8 billion ($74.5 billion) worth of trade in goods in 2020, or 11.1% of India’s total global trade.
- India’s exports to the EU were worth $41.36 billion in 2020-21, as per data from the commerce ministry.
- The CBT would cover energy-intensive sectors such as cement, steel, aluminium, oil refinery, paper, glass, chemicals as well as the power sector.
- By increasing the prices of Indian-made goods in the EU, this tax would make Indian goods less attractive for buyers and could shrink demand.
- Sadly, India’s many ‘self-reliance’ tariffs are also a contributor to this.
Issues with CBT
- Impact on trade: The degree of impact on industrial sectors would be largely influenced by two factors: carbon intensity and trade intensity.
- Altering competitiveness: For companies, it will raise the administrative burden of crossing borders and increase trade frictions, especially for small businesses. That will inevitably reduce choice and raise costs for consumers.
- Promoting protectionism: The carbon tax may end up being protectionist, and will hit emerging economies like India hard.
- Unfair practices under WTO: Depending on their design they could fall foul of WTO measures designed to prevent importing countries from discriminating against particular exporting countries.
- A violation of Paris Accord: CBT compels developing countries to pay the same price as the developed countries to climate change. The EU is essentially bypassing the principle of ‘common but differentiated responsibilities’ that should guide international climate action.
Way forward
- Carbon taxing is just one way of holding large emitters accountable for their role in harming the environment.
- However, fundamental changes can’t be forced by tariffs.
- If the planet is to have any hope of meeting the Paris Agreement goals, drastic measures that consider both the economic and social wellbeing of nations’ inhabitants must be taken.
- This should take all nations into confidence than imposing such overnight tariffs.
- It is no doubt that India must be in the forefront in climate politics. But it must also be cautious about the negotiations in global laws to protect domestic interests.
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From UPSC perspective, the following things are important :
Prelims level: Permanent Comission
Mains level: Women in Armed Forces
The Supreme Court has ordered the government to grant pension to women officers who fought for 12 years to get reinstatement and permanent commission in the Indian Air Force (IAF).
Women in IAF: A case for Permanent commission
- History is replete with examples where women have been denied their just entitlements under law and the right to fair and equal treatment in the workplace.
- The women had been fighting for 12 years for a chance to be considered for permanent commission.
- The women pointed out to the court’s judgment in Babita Puniya Case.
- It upheld the right of women short service commission officers to be considered for permanent commission on a par with their men colleagues.
Why males have ever dominated the armed forces?
- Militaries across the world help entrench hegemonic masculine notions of aggressiveness, strength and heterosexual prowess in and outside their barracks.
- The military training focuses on creating new bonds of brotherhood and camaraderie between them based on militarized masculinity.
- This temperament is considered in order to enable conscripts to survive the tough conditions of military life and to be able to kill without guilt.
- To create these new bonds, militaries construct a racial, sexual, gendered “other”, attributes of whom the soldier must routinely and emphatically reject.
Dimensions of the Issue
- Gender is not a hindrance: As long as an applicant is qualified for a position, one’s gender is arbitrary. It is easy to recruit and deploy women who are in better shape than many men sent into combat.
- Combat Readiness: Allowing a mixed-gender force keeps the military strong. The armed forces are severely troubled by falling retention and recruitment rates. This can be addressed by allowing women in the combat role.
- Effectiveness: The blanket restriction for women limits the ability of commanders in theatre to pick the most capable person for the job.
- Tradition: Training will be required to facilitate the integration of women into combat units. Cultures change over time and the masculine subculture can evolve too.
- Cultural Differences & Demographics: Women are more effective in some circumstances than men. Allowing women to serve doubles the talent pool for delicate and sensitive jobs that require interpersonal skills, not every soldier has.
Hurdles for Women
- Capabilities of women: Although women are equally capable, if not more capable than men, there might be situations that could affect the capabilities of women such as absence during pregnancy and catering to the responsibilities of motherhood, etc.
- Adjusting with the masculine setup: To then simply add women to this existing patriarchal setup, without challenging the notions of masculinity, can hardly be seen as “gender advancement”.
- Fear of sexual harassment: Sexual harassment faced by women military officers is a global phenomenon that remains largely unaddressed, and women often face retaliation when they do complain.
- Gender progressiveness could be an illusion: Women’s inclusion is criticized as just another manoeuvre to camouflage women’s subjugation and service as women’s liberation.
- Battle of ‘Acceptance’: Acceptance of women in the military has not been smooth in any country. Every army has to mould the attitude of its society at large and male soldiers in particular to enhance acceptability of women in the military.
- Job Satisfaction: Most women feel that their competence is not given due recognition. Seniors tend to be over-indulgent without valuing their views. They are generally marginalised and not involved in any major decision-making.
- Doubts about Role Definition: The profession of arms is all about violence and brutality. To kill another human is not moral but soldiers are trained to kill.
- Physical and Physiological Issues: The natural physical differences in stature, strength, and body composition between the sexes make women more vulnerable to certain types of injuries and medical problems. The natural processes of menstruation and pregnancy make women particularly vulnerable in combat situations.
- Comfort Level: Most women accepted the fact that their presence amongst males tends to make the environment ‘formal and stiff’. The mutual comfort level between men and women colleagues is often very low.
Conclusion
- Concern for equality of sexes or political expediency should not influence defence policies.
- Armed forces have been constituted with the sole purpose of ensuring defence of the country and all policy decisions should be guided by this overriding factor.
- All matters concerning defence of the country have to be considered in a dispassionate manner.
- No decision should be taken which even remotely affects the cohesiveness and efficiency of the military.
Way ahead
- Induction of women into armed forces should be on the basis of their abilities and not on the basis of their gender.
- The training for both women and men should be standardized to eliminate differentiation based on physical capabilities.
- The career aspects and opportunities for women need to be viewed holistically keeping the final aim in focus.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Pension Scheme
Mains level: Pension reforms in India
Some political parties are promising to switch to the Old Pension Scheme in the opposition-ruled states.
Old Pension Scheme
- Pension to government employees at the Centre as well as states was fixed at 50 per cent of the last drawn basic pay.
- The attraction of the Old Pension Scheme or ‘OPS’ — called so since it existed before a new pension system came into effect for those joining government service from January 1, 2004.
- It was hence described as a ‘Defined Benefit Scheme’.
- To illustrate, if a government employee’s basic monthly salary at the time of retirement was Rs 10,000, she would be assured of a pension of Rs 5,000.
- Also, like the salaries of government employees, the monthly pay-outs of pensioners also increased with hikes in dearness allowance or DA.
What were the concerns with the OPS?
- Liability remained unfunded: There was no corpus specifically for pension, which would grow continuously and could be dipped into for payments.
- Usual budgetary allocation: The Union budgetary allocations (Rs 3,86,001 crore in 2020-21) provided for pensions every year; there was no clear plan on how to pay year after year in the future.
- Burden on working class: The ‘pay-as-you-go’ scheme created inter-generational equity issues — meaning the present generation had to bear the continuously rising burden of pensioners.
- Far extended pay-outs: Better health facilities would increase life expectancy, and increased longevity would mean extended payouts.
What was planned to address this situation?
Ans. Oasis Project
- In 1998, the Union Ministry of Social Justice and Empowerment commissioned a report for an Old Age Social and Income Security (OASIS) project.
- Its primary objective was targeted at unorganised sector workers who had no old age income security.
- The OASIS report recommended individuals could invest in three types of funds to be floated by six fund managers:
- Safe (allowing up to 10 per cent investment in equity),
- Balanced (up to 30 per cent in equity), and
- Growth (up to 50 per cent in equity)
- The balance would be invested in corporate bonds or government securities.
- Individuals would have unique retirement accounts, and would be required to invest at least Rs 500 a year.
Alternative to OPS: New Pension Scheme
- The New Pension System was proposed by the Project OASIS report; it became the basis for pension reforms.
- It was originally conceived for unorganised sector workers, was adopted by the government for its own employees.
- The NPS for Central government employees was notified on December 22, 2003.
- Unlike some other countries, the NPS was for prospective employees — it was made mandatory for all new recruits joining government service from January 1, 2004.
- The defined contribution comprised 10 per cent of the basic salary and DA by the employee and a matching contribution by the government — this was Tier 1, with contributions being mandatory.
- In January 2019, the government increased its contribution to 14 per cent of the basic salary and dearness allowance.
- Schemes under the NPS are offered by nine pension fund managers — sponsored by SBI, LIC, UTI, HDFC, ICICI, Kotak Mahindra, Aditya Birla, Tata, and Max.
Risk profiles under NPS
- NPS is now regulated under the Pension Fund Regulatory & Development Authority (PFRDA) Act, 2013.
- The risk profiles of various schemes offered by these players vary from ‘low’ to ‘very high’.
- The 10-year return for the NPS Scheme-Central Government floated by SBI, LIC, and UTI stood at 9.22 per cent; the 5-year return at 7.99 per cent, and the 1-year return at 2.34 per cent.
- Returns on high-risk schemes could be as high as 15 per cent.
Issues with OPS
- Burden on exchequer: In 30 years, the cumulative pension bill of states has jumped to Rs 3,86,001 crore in 2020-21 from Rs 3,131 crore in 1990-91.
- Huge share of tax receipts: Overall, pension payments by states eat away a quarter of their own tax revenues. If wages and salaries of state government employees are added to this bill, states are left with hardly anything from their own tax receipts.
- Issue of inter-generational equity: Today’s taxpayers are paying for the ever-increasing pensions of retirees, with Pay Commission awards almost taking the pension of old retirees to current levels. It means the pension of someone who retired in 1995 may well be the same as that for someone who retires in 2025.
Why states are reverting back to OPS?
OPS brings state governments some short-term gains:
- Deferment to contribution: They save money since they will not have to put the 10 per cent matching contribution towards employee pension funds.
- Low curtailment in salaries: For employees too, it will result in higher take-home salaries, since they too will not set aside 10 per cent of their basic pay and dearness allowance towards pension funds.
- Old age security: Some government employees are concerned that their pension may not be the same as 50 per cent of their last salary drawn (as in the OPS).
Why need pensions at all?
- Pension helps you accumulate a part of your income, over a long period, so that this money can be used post-retirement.
- They provide a steady source of income when one needs the most.
- It helps inculcate fiscal discipline.
Conclusion
- NPS vs. OPS will play out in the Himachal Assembly elections with freebie trending parties considering following the same trend as Rajasthan, Chhattisgarh and Jharkhand.
- The fiscal risks involved in the transition of NPS-borne employees to OPS regime are substantive and to a great extent unsustainable keeping in view the existing share of pensionary liability in government expenditure.
- It is estimated that the cost incurred by the government on pension is more than double the cost of NPS contribution in the long run.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Patan Patola
Mains level: Not Much
At the G20 summit, Prime Minister gifted traditional artworks from Gujarat- the ‘Patan Patola’ scarf to his Italian counterpart Giorgia Meloni.
What is Patan Patola?
- The ancient art of double ikat or Patola woven in pure silk dates back to the 11th century.
- The Patola fabrics bear an equal intensity of colours and design on both sides.
- This peculiar quality has its origins in an intricate and difficult technique of dyeing or knot dyeing, known as ‘bandhani’, on the warp and weft separately before weaving.
How is it woven?
- Patola is woven on primitive hand-operated harness looms made out of rosewood and bamboo strips. The loom lies on a slant.
- The other commonly worn Patola is the Rajkot Patola, woven on a flat loom.
- The process involves warp and weft silk threads that are tied with cotton thread on portions marked with the proposed design.
- This tied portion then remains unexposed to colours while dyeing, which is followed by tying, untying, redyeing and dyeing in different shades.
- Single and primary colours are applied one after another as mixed shades develop by overlapping. This makes the design stand out.
Who weaves it?
- The last surviving family into Patola weaving is the Salvi family in Patan.
- From the oldest 70-year-old Rohit to the youngest 37-year-old Savan, the entire nine member-family of five men and four women is engaged with this art form.
- The Salvi family shared that before World War II, Indonesia was the major buyer of Patolas.
- Legend has it that King Kumarpal of the Solanki dynasty invited some 700 families of Patola weavers from Jalna (Maharashtra) to settle in Patan in North Gujarat, and the Salvis are among them.
- The family has also been honoured with several national awards.
How costly it is?
- While possessing and wearing a Patola is considered a matter of pride, the fabric has largely remained inaccessible to common people because of its high price.
- The base price of a Patola saree in the Patan weave starts from Rs 1.5 lakh up and can go up to Rs 6 lakh.
- A typical 46-inch dupatta or scarf sells in the range of Rs 80,000, depending on the intricacy of the design.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: UNSC, FATF
Mains level: Terror financing and Measures to tackle
Context
- The spectre of terrorist violence looms large over the world. With the technological advancement terrorists, criminals, weapons and funds are also able to move across national boundaries easily. India is increasingly playing a leading role in curbing the terror financing.
What is Terror Financing?
- Terrorist financing encompasses the means and methods used by terrorist organizations to finance their activities.
- This money can come from legitimate sources, for example from profits from businesses and charitable organizations.
- However, terrorist groups can also get their funds from illegal activities such as trafficking in weapons, drugs or people, or kidnapping for ransom.
- Nations like Pakistan has stated policy of supporting cross-border terrorism in India through global funding.
What are the channels of free flow of funds?
- The global flow of funds has three traditional channels:
- Direct smuggling of cash: First, direct smuggling of cash through international borders.
- Use of Hawala: Second, the use of hawala networks.
- Banking Networks: Third, banking networks including SWIFT and other international channels.
- Use of new technologies: But now swift technological developments in areas of blockchain or cryptocurrencies which transcend national boundaries and international currency systems have emerged as a new channel for financing terrorist and other illegal activities.
What are the identified sources of funds used by Terrorist organizations?
- Legal financial activities: Terrorist organizations raise money through several sources like travel agencies, money changers, real estate, retail outlets, NGOs, charitable trusts and even from state sponsors.
- Sourced form Criminal activities: Terrorists also derive funding from a variety of criminal activities ranging in scale and sophistication from low-level crime to organized fraud or narcotics smuggling or illegal activities in failed states and other safe havens.
- For instance: Declassified files seized during the raid on Osama bin Laden’s Abbottabad hideout also revealed terror financing related documents.
What steps could be taken to uproot terror financing methods?
- Identifying the funding requirements: The first step in identifying and forestalling the flow of funds to terrorists is to understand the funding requirements of modern terrorist groups.
- Understanding the ideology: The costs associated not only with conducting terrorist attacks, but also with developing and maintaining a terrorist organisation and its ideology are significant. Funds are required to promote a militant ideology, pay operatives and their families, arrange for their travel, train new members, forge documents, pay bribes, acquire weapons and stage attacks.
- Tracing the methods of fund flow: Terrorists use a wide variety of methods to move money within and between organisations, including the financial sector, physical movement of cash by couriers, and movement of goods through the trade system. Charities and alternative remittance systems have also been used to disguise terrorist movement of funds.
- Monitoring the ambiguous financial intelligence: Only accurate and well linked financial intelligence can reveal the structure of terrorist groups and also the activities of individual terrorists. Of late, such financial intelligence from the private sector has also given significant clues to foil terrorist acts.
How India is leading the battle against terror financing?
- India’s continues efforts: Prime Minister Narendra Modi has in all his international speeches spoken at length on this. India’s efforts in taking this momentum forward need to be appreciated.
- India actively providing platform for various assemblies: Recently, the 90th Interpol General Assembly held in New Delhi, followed by a special session of UN Security Council’s Counter Terrorism in late October. In the third week of November, India will host another global conference focussed only on Countering Financing of Terrorism (CFT).
- CTC adopted Delhi Declaration: The Counter-Terrorism Committee (CTC) unanimously adopted the Delhi Declaration on countering the use of new and emerging technologies for terrorist purposes. The declaration aims to cover the main concerns surrounding the abuse of drones, social media platforms, and crowdfunding, and create guidelines that will help to tackle the growing issue.
- India will host ‘No Money for Terror’ Conference: The Ministry of Home Affairs will organise the Third Ministerial ‘No Money for Terror’ Conference. where participants from 75 countries expected to attend the conference. The conference that was first held In Paris in 2018, followed by Melbourne in 2019.
- Foundation of FATF: Financial Action Task Force (FATF) was formed in 1989 as a means of bringing order and implementing standards to the monetary system in the world with regard to terror finance and money laundering.
- Adopting the resolutions with time: It was the 2001 terrorist attacks that changed the way security agencies looked at terror financing. The UNSCR resolution 1267 in 1999 and UNSCR resolution 1373 in 2001 formed the bedrock of the financial sanctions’ regime for terrorist organisations and individuals.
- FATF’s Grey listing: One of the key reasons for Pakistan being placed on the FATF Grey List from 2018 to 2022 was its open defiance of those designations. Only after the FATF’s grey listing open terrorist activities stop and the terrorist infrastructure in Pakistan declined to some extent.
- UNSC sanctions and designations: It is pertinent to understand that the FATF has developed its entire paradigm around the word risk. It used the United Nations Security Council sanctions against terrorists and terrorist organizations to begin to evolve a complex body of documentation in order to assess technical compliance and effectiveness of countries in implementing those UN designations. Eight of the nine UN designated terrorists were arrested and convicted in a major testimony to the success of the UN sanctions regime.
Conclusion
- The UN Security Council has sought to increase efforts against terror financing. It is only through inclusive efforts that this complex issue can be addressed. India’s hosting of the “No money for terror” conference later this month should go a long way in focusing on the issue of state sponsored terror financing.
Mains Question
Q. With the technological advancement terrorists, criminals, weapons and funds are also able to move across national boundaries easily. Discuss what steps can be taken at national and international level to curb the menace of terror financing?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Plight of sanitation workers in India
“My head hangs in shame,” said the Chief Justice of Delhi High Court while condemning the Delhi Development Authority (DDA) for not paying ₹10 lakh each as compensation to the family of person who died after inhaling toxic gases inside a sewer.
Why such criticism by the Delhi HC?
- Cleaning of sewers and septic tanks has led to at least 351 deaths since 2017.
Manual sanitary works in India
- Manual scavenging is the practice of removing human excreta by hand from sewers or septic tanks.
- India banned the practice under the Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013 (PEMSR).
- The Act bans the use of any individual for manually cleaning, carrying, disposing of or otherwise handling in any manner, human excreta till its disposal.
- In 2013, the definition of manual scavengers was also broadened to include people employed to clean septic tanks, ditches, or railway tracks.
- The Act recognizes manual scavenging as a “dehumanizing practice,” and cites a need to “correct the historical injustice and indignity suffered by the manual scavengers.”
Why is it still prevalent in India?
- Low awareness: Manual scavenging is mostly done by the marginalized section of the society and they are generally not aware about their rights.
- Enforcement issues: The lack of enforcement of the Act and exploitation of unskilled labourers are the reasons why the practice is still prevalent in India.
- High cost of automated: The Mumbai civic body charges anywhere between Rs 20,000 and Rs 30,000 to clean septic tanks.
- Cheaper availability: The unskilled labourers, meanwhile, are much cheaper to hire and contractors illegally employ them at a daily wage of Rs 300-500.
- Caste dynamics: Caste hierarchy still exists and it reinforces the caste’s relation with occupation. Almost all the manual scavengers belong to lower castes.
Various policy initiatives
- Prohibition of Employment as Manual Scavengers and their Rehabilitation (Amendment) Bill, 2020: It proposes to completely mechanise sewer cleaning, introduce ways for ‘on-site’ protection and provide compensation to manual scavengers in case of sewer deaths.
- Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013: Superseding the 1993 Act, the 2013 Act goes beyond prohibitions on dry latrines, and outlaws all manual excrement cleaning of insanitary latrines, open drains, or pits.
- Rashtriya Garima Abhiyan: It started national wide march “Maila Mukti Yatra” for total eradication of manual scavenging from 30th November 2012 from Bhopal.
- Prevention of Atrocities Act: In 1989, the Prevention of Atrocities Act became an integrated guard for sanitation workers since majority of the manual scavengers belonged to the Scheduled Caste.
- Compensation: As per the Prohibition of Employment of Manual Scavengers and their Rehabilitation (PEMSR) Act, 2013 and the Supreme Court’s decision in the Safai Karamchari Andolan vs Union of India case, a compensation of Rs 10 lakh is awarded to the victims family.
- National Commission for Safai Karamcharis (NCSK): It is currently a temporary non-statutory body that investigates the conditions of Safai Karamcharis (waste collectors) in India and makes recommendations to the Government.
Other initiatives for sanitation workers
- The ministry now has proper distinction between sanitation work and manual scavenging.
- The practice of manual scavenging no longer takes place in the country as all manual scavengers had been accounted for and enrolled into the rehabilitation scheme, said the ministry.
- The enumeration of sanitization workers is soon to be conducted across 500 AMRUT (Atal Mission for Rejuvenation and Urban Transformation) cities, as a part of National Action Plan for Mechanised Sanitation Ecosystem (NAMASTE).
- The NAMASTE scheme aims to eradicate unsafe sewer and septic tank cleaning practices.
Way forward
- Regular surveys and social audits must be conducted against the involvement of manual scavengers by public and local authorities.
- There must be proper identification and capacity building of manual scavengers for alternate sources of livelihood.
- Creating awareness about the legal protection of manual scavengers is necessary.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Impact of climate change on human health
A recent report by Lancet, has traced in detail the intimate link between changing weather events and their impact on the health of people.
What is the news?
- The 2022 Lancet Countdown on Health and Climate Change: Health at the Mercy of Fossil Fuels points out that the world’s reliance on fossil fuels increases the risk of disease, food insecurity and other illnesses related to heat.
Impact of climate change on health
(1) Extreme Events
- Heatwaves: The Lancet report indicates that rapidly increasing temperatures exposed vulnerable populations (adults above 65 years old and children younger than 1) to 3.7 billion more heatwave days in 2021 than annually in 1986–2005.
- Shift in patterns: There is no doubt that events such as floods, droughts and recurrent cyclones are direct outcome of climate change.
(2) Impact on health
- Infectious diseases: The changing climate is affecting the spread of infectious disease, raising the risk of emerging diseases and co-epidemics. For instance, coastal waters are becoming more suited for the transmission of Vibrio pathogens.
- More vector borne diseases: The number of months suitable for malaria transmission has increased in the highland areas of the Americas and Africa.
- More lives loss: The WHO has predicted that between 2030 and 2050, climate change is expected to cause approximately 2,50,000 additional deaths per year, from malnutrition, malaria, diarrhoea and heat stress.
- Others: Low air quality, Rise in zoonotic diseases.
(3) Food security
- Crop loss: Higher temperatures threaten crop yields directly, with the growth season shortening for many cereal crops.
- Supply chain disruptions: Extreme weather events disrupt supply chains, thereby undermining food availability, access, stability, and utilisation.
- Malnutrition: The prevalence of undernourishment increased during the COVID-19 pandemic, and up to 161 million more people faced hunger in 2020 than in 2019.
Way forward
- Health-centred response: A health-centred response to the coexisting climate, energy, and cost-of-living crises provides an opportunity to deliver a healthy, low-carbon future.
- Realization of the problem: The governments’ commitment to assess and address the threats from climate change, are positive signs, the report stresses.
- Holistic approach: This is the way a health-centred response would work – it would reduce the likelihood of the most catastrophic climate change impacts, while improving energy security and creating an opportunity for economic recovery.
- Shift in dietary patterns: The report also calls for an accelerated transition to balanced and more plant-based diets, as that would help reduce emissions from red meat and milk production, and prevent diet-related deaths.
- Easing the healthcare: The report emphasizes reducing the strain on health-care providers, and leading to more robust health systems.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Vostro and Nostro Accounts, SWIFT
Mains level: Rupee-Ruble Trade
Russian banks have been permitted by the RBI to open special Vostro accounts to pave the way for rupee-based export-import transactions.
Why such move?
- Logged out of SWIFT -the messaging service to facilitate and confirm cross-border payments – most Russian banks are looking for alternative ways.
- India and several other countries too want a way out so that trade can continue.
- India and Russia are now exploring to directly trade in rupee-ruble.
And this is where Nostro and Vostro may come into play.
What is a Vostro Account?
- A Vostro account is defined as an account that a correspondent bank holds on behalf of another bank.
- Vostro is a Latin word that means “your”, therefore, a vostro account implies that it is “your account”.
- An example of such an account would be HSBC vostro account is held by SBI in India.
Understanding a Vostro Account
- The banks are acting in a fiduciary relationship and they share a principal-agent relationship.
- The correspondent foreign bank is a financial intermediary in the transactions that they are involved in.
- The foreign bank acts as an agent that provides services such as executing wire transfers, performing foreign exchange, enabling deposits, enabling withdrawals, expediting international trade on behalf of the domestic bank.
- It is most used in settlement of foreign exchanges or foreign trade.
- No interest will be paid on the vostro account maintained, as per the directives that have been issued by the RBI in India.
- An overdraft facility can only be availed if it is specifically sanctioned.
Other related terms: Nostro and Loro Accounts
- Vostro and Nostro accounts are often confused to be the same.
- While in essence, it is the same account that is being spoken about, the perspective from which it is being seen matters.
- In a vostro account, it is the correspondent foreign bank point of view, whereas in a nostro account, it is the point of view of the domestic bank.
- Vostro accounts are maintained in the domestic currency whereas, nostro accounts in foreign currency.
- A Loro account is a current account that is maintained by one domestic bank for another domestic bank in the form of a third party account, unlike nostro and vostro which is bilateral correspondence.
Why is it used?
- This account serves as an economic way for small domestic banks to access the financial resources and services of a larger foreign bank.
- Enables one to offer international banking solutions to a customer without opening a bank branch in a foreign nation.
- It minimizes the time for transfer of funds.
- Closely monitored nostro accounts can be used for better reconciliation of statements.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Birsa Munda
Mains level: Not Much
On the occasion of the birth anniversary of tribal leader Birsa Munda, the Centre marked the second Janjatiya Gaurav Divas on November 15 to celebrate the contributions of tribal communities to Indian culture.
Who was Birsa Munda (1875-1900)?
- Birsa Munda was a tribal freedom fighter, religious leader, and folk hero who belonged to the Munda tribe.
- He spearheaded a tribal religious millenarian movement that arose in the Bengal Presidency (now Jharkhand) in the late 19th century, during the British Raj.
His legacy
(A) Birth and early childhood
- Born on November 15, 1875, Birsa spent much of his childhood moving from one village to another with his parents.
- He belonged to the Munda tribe in the Chhotanagpur Plateau area.
- He received his early education at Salga under the guidance of his teacher Jaipal Nag.
- On the recommendation of Jaipal Nag, Birsa converted to Christianity in order to join the German Mission school.
- He, however, opted out of the school after a few years.
(B) New faith ‘Birsait’ against religious conversion
- The impact of Christianity was felt in the way he came to relate to religion later.
- Having gained awareness of the British colonial ruler and the efforts of the missionaries to convert tribals to Christianity, Birsa started the faith of ‘Birsait’.
- Soon members of the Munda and Oraon community started joining the Birsait sect and it turned into a challenge to British conversion activities.
- The Mundas called him Dharati Aaba, the father of earth.
(C) The Ulgulan
- The Great Tumult or Ulgulan was a movement started by Birsa Munda against the exploitation and discrimination against tribals by the local authorities.
- Although the movement failed, it did result in the Chotanagpur Tenancy Act which forbade tribal lands passing to non-tribals, protecting their land rights for the foreseeable future.
(D) Death
- On March 3, 1900, Birsa Munda was arrested by the British police while he was sleeping with his tribal guerilla army at Jamkopai forest in Chakradharpur.
- He died in Ranchi jail on June 9, 1900, at the young age of 25.
(E) Creation of Jharkhand
- Birsa Munda’s achievements are known to be even more remarkable by virtue of the fact that he came to acquire them before he was 25.
- In recognition of his impact on the national movement, the state of Jharkhand was created on his birth anniversary in 2000.
Try this PYQ from CSP 2020
With reference to the history of India, “Ulgulan” or the Great Tumult is the description of which of the following event?
(a) The Revolt of 1857
(b) The Mappila Rebellion of 1921
(c) The Indigo Revolt of 1859-60
(d) Birsa Munda’s Revolt of 1899-1900
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ECI and its mandate,
Mains level: Issues with the electoral bonds and political parties funding mechanism
Context
- Elections are to democracy what financial markets are to the economy. The absence of an omnibus law to regulate elections and political parties in India is a legislative gap waiting to be filled.
Significance of political parties in democracy
- A political party is an organized group of citizens who hold common views on governance and act as a political unit that seeks to obtain control of government with a view to further the agenda and policy they profess.
- Political parties maintain a continuous connection between the people and those who represent them either in government or in the opposition.
- Political parties in India are extra-constitutional, but they are the breathing air of the political system.
Current procedure of recognizing and regulating the political parties In India
- Registration of political parties: The Representation of the People Act 1951 was amended in 1988 to add a new section IVA on “Registration of political parties” by which the Election Commission of India (ECI) exercises its mandate for superintendence, direction, and control of elections under Article 324 of the Constitution of India.
- Recognition as national or state political party: Association of citizens can apply to the ECI to be registered by submitting its Memorandum of Association and swearing allegiance to the Constitution. It requires fulfilment of performance criteria, including a minimum share of the electoral votes cast in the last election and the number of seats won to become a recognized national or a state party.
- A regulatory gap in Municipal political parties: Municipalities became the third level of government, three decades ago in 1992, through the 74thconstitutional amendment. But a parallel recognition for political parties operating only at the municipal level is yet to be conceptualized.
Mechanism of Election funding
- Encouraging private corporates and individual investment: Indian government does not directly fund election campaigns of parties or independents. However, it has made political parties exempt from income tax, to encourage private corporate and individual investment in building political parties.
- Limit on election campaign expenditure: The ECI set upper-end limits (January 2022) for election campaign expenditure in parliamentary seats at INR9.5 million and INR4 million in state legislature seats.
Electoral bonds to end large cash payments in election finance.
- Scheme of electoral bonds:
- A publicly owned commercial bank, with the largest network of branches is the only designated vendor.
- Bonds remain valid for 15 days within which they can be encased through the bank account of the selected political party.
- The purchaser-donor enjoys tax credits on the purchased bonds as in any other donation to charities.
- Association of democratic records: The idea was to facilitate large donors, preferring anonymity whilst donating funds for elections, with an alternative to cash payments.
What is the cause of concerns over the electoral bonds?
- Anonymity of the electoral bonds: The anonymity afforded by the bonds is primarily versus citizens.
- Bond vendor is a government owned bank: SBI is a government-owned bank, which can be persuaded by the government into sharing data informally regarding the bond purchases and encashments by political parties
What can be done to ensure the security of the donor?
- Bond Digitization: Bonds should be digitized and the privacy of the transfer should be protected through encryption.
- Authorized access: Redemption is through banking the audit trail of the donor and the recipient would exist for authorized access.
- Enhancing transparency with ECI: Transparency should be enhanced whilst protecting anonymity by authorizing ECI to collect and publish de-personalized information.
- Personal data should be accessed with the specific orders only: Access for security and criminal investigation agencies to the personal data should come via a specific order of the ECI allowing such privileged access.
- Strict Supervision of political parties: Poor Intra-party governance is concentrated in the Registered Unrecognize Political Parties (RUPP). Most are in breach of their undertaking to fight an election within five years and remain active thereafter.
- Strengthen the Regulatory compliance: The benefit of income tax exemption should only be available after registered parties demonstrate a five-year record of compliance with the regulations.
- Enforce inner-party democracy and avoiding conflict of interest: Making party members occupying party positions, ineligible for holding executive positions in government. This is necessary to create a complete segregation of functions within the ruling party and the government
- Empower ECI to regulate political parties: The misuse of the fiscal privileges afforded to political parties can be minimized through targeted regulatory tweaks, within the existing construct of private financing and the inner functioning of parties improved through targeted regulation.
Conclusion
- “Secrecy is a darkness where corruption gets nurtured”. Funding to the political parties need to be transparent. Transparent funding will pave the way for level playing field for all the political parties.
Mains Question
Q. What are the pitfalls of anonymous political funding through electoral bonds. Suggest solutions to ensure the transparent political funding.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Cyber crimes and online safety of Women
Context
- India has one of the youngest youth demographics in the world and among the most active online. As online interactions increase, more content is created and shared among people, helping them form new and wonderful connections. Sometimes, however, these interactions also make them vulnerable to harm.
- Sharing embarrassing and cruel content about a person to impersonation
- Stalking and electronic surveillance
- Non-consensual use of photography
- Violent threats and hate speech
- Defamation
- Flaming- use of vitriolic and hostile messages including threats, insults
- Trolling
- The online harassment of women, sometimes called Cyber-sexism or cyber-misogyny, is specifically gendered abuse targeted at women and girls online.
- It incorporates sexism, racism and religious prejudice.
How women disproportionately get affected?
- Often women are blamed: Often, crimes that disproportionately impact women devolve into mass panic and lead to an all too predictable top-down discourse around the need to protect our sisters and daughters.
- Curbing the freedom of Women: The reaction, however well intentioned, will end up denying women their freedom and agency by their so-called protectors, many of whom are simply telling women to go offline, to be ashamed of expressing themselves, to stay in their lane.
What is role of intermediaries in preventing such abuses?
- Making intermediary liable: As of now, the intermediaries are not liable for any third-party data or communication link hosted or stored by them.
- Mandatory Data retention by intermediaries: They are required to retain the requisite data for duration as prescribed by the Government and supply the same to the authorities concerned, as and when sought.
- Punishment for Non-compliance is: Highlighting any contravention attracts punishment as prescribed under the IT Act.
What are the Steps taken by the Government?
- IT rules 2021: The Ministry of Electronics and Information Technology notified the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.
- Defined Categories of abuse: They include contents that are defamatory, obscene, pornographic, paedophilic, invasive of another’s privacy, insulting or harassing on the basis of gender, libellous, racially or ethnically objectionable, etc.
- Prohibition on derogatory publications: The intermediaries, on the direction of the court or appropriate government agency, are prohibited from hosting, storing or publishing any information declared unlawful.
- Removal of content within 24 hours: Within 24 hours from the receipt of a complaint from, or on behalf of, an individual about any offensive content, they are required to take all reasonable and practicable measures to remove or disable access to it.
- Meetings of parliamentary committees: Various parliament committees in India have held meetings to discuss the issue of online safety of women over the years, and part of the government’s motivation in notifying the new IT rules had been rooted in the growing concern regarding the safety and security of users, particularly women and children. These are very good tangible steps.
- Amendment in IT act should include the concerns of women: With the IT Act coming up for a rehaul, there is an opportunity to discuss in detail the nature of technology-facilitated abuse, capturing what this means, understanding how cases impact individuals as well as communities, the language needed to capture such offences and the punishment penalties, jail or even rehabilitation programmes for perpetrators. This could be the start of an era of evidence-based discussion.
Conclusion
- Despite these efforts, it is clear that women in India won’t feel safe online anytime soon unless society lets them. What could be helpful here is to elevate the public discourse around technology-facilitated abuse.
Mains Question
Q. How women are vulnerable against online abuse? What is the role of Intermediaries in online abuse case? What are governments efforts to make women friendly cyberspace?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MARS alert system, global Methane pledge, Methane
Mains level: MARS alert system, Methane emission
Context
- A new satellite-based system will now help governments detect methane emissions and tackle them. The Methane Alert and Response System (MARS) was launched at the 27th Conference of Parties (COP27) to the United Nations Framework Convention on Climate Change in Sharm El-Sheikh, Egypt.
What is Methane Alert and Response System (MARS)?
- MARS is a part of global efforts to slow climate change by tracking the global warming gas.
- The system will be the first publicly available global system to connect methane detection to notification processes transparently.
- The data-to-action platform was set up as part of the UN Environment Programme’s (UNEP) International Methane Emissions Observatory (IMEO) strategy to get policy-relevant data into the right hands for emissions mitigation.
How the “MARS” will work?
- The Methane Alert and Response System, or MARS, will integrate data from a large number of existing and future satellites to identify significant methane emission events anywhere in the world.
- It will send out notifications to the relevant stakeholders and support and track mitigation progress.
- According to the UN statement MARS will track the large point emission sources, mainly in the fossil fuel industry, but with time, would be able to detect emissions from coal, waste, livestock and rice fields as well.
- UNEP will continue to monitor the event location and make the data and analysis available to the public between 45 and 75 days after detection.
Methane a dangerous greenhouse gas
- A major greenhouse gas: Methane is the second-most common of the six major greenhouse gases, but is far more dangerous than carbon dioxide in its potential to cause global warming.
- One of major contributor of GHG emissions: Contribution Accounting for about 17 per cent of the current global greenhouse gas emissions.
- One of the key reasons behind Temperature rise: Methane is blamed for having caused at least 25 to 30 per cent of temperature rise since the pre-industrial times.
- Methane largely a Sectoral gas: Unlike carbon dioxide, methane is largely a sectoral gas, and there are only a few sources of emission.
- Few sources large emissions of methane: The global warming potential of methane is about 80 times that of carbon dioxide. It accounts for a small portion of human-induced greenhouse gas emissions compared to carbon dioxide.
- To achieve the target set by Global methane pledge: At the Glasgow climate conference last year, nearly 100 countries had come together in a voluntary pledge the Global Methane Pledge to cut methane emissions by at least 30 per cent by 2030 from the 2020 levels. More countries have joined in this initiative since then, bringing the total to nearly 130.
- To keep the temperature, rise below 5-degree Celsius: A 30 per cent reduction in methane emissions by 2030 is expected to result in avoiding 0.2 degree rise in temperature by the year 2050, and is considered absolutely essential in the global efforts to keep the temperature increase below the 1.5-degree Celsius target. This is a global, not a national reduction target.
- Reducing methane emissions from the atmosphere provides multiple benefits: Methane being a sectoral gas with few sources of emission, it is possible to cut down on methane emissions without having widespread impact on the economy, a reduction in methane emissions brings big benefits in a short time.
- MARS Provides technical and advisory to the partners: If requested, MARS partners will also provide technical or advisory services, such as help in assessing mitigation opportunities.
All you need to know about Conference of Parties (COP).
- Unless the parties decide otherwise, every year The United Nations Framework Convention on Climate Change (UNFCCC) convenes what is called a Conference of Parties (COP), a meeting that brings together leaders and delegates from around the world to strengthen their commitments and actions against specific climate change goals.
- The parties are the 198 countries that ratified the UNFCCC.
- The UNFCCC is an international treaty focused on preventing dangerous human interference with the climate system, primarily by stabilizing greenhouse gas (GHG) emissions.
Conclusion
- Cutting methane is the fastest opportunity to reduce warming and keep 1.5°C within reach, and this MARS a new alert and response system is going to be a critical tool for helping all of us deliver on the Global Methane Pledge.
Mains Question
Q. Methane is thought to be 80 times more efficient than carbon dioxide at trapping atmospheric heat in the 20 years following its release. Discuss how MARS a new alert system would be helpful to keep the temperature rise below 1.5 degree Celsius?
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